California walks away from Internet tax effort

Iria · Feb 13, 2007, 04:11 PM

Source: San Jose Business Journal
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At a time when California is trying to find money to balance the budget, fund a statewide health-care plan and build roads and schools, lawmakers have backed away from one potential source of money: the Internet.

Eliminating that possibility was, in the words of Board of Equalization member Bill Leonard, "a non-decision" that occurred last year when the Legislature declined to fund California's involvement with other states in an effort to synchronize state sales taxes.

Simplifying the taxes charged by the nation's 7,500 tax jurisdictions is the first step before asking Congress for the right to require sellers on the Internet to collect sales tax for local jurisdictions.

Organizers of the tax effort say California's absence doesn't doom the effort, but without the nation's most populous state as well as the absence of New York, Texas and Florida, it appears unlikely that the 15 smaller states can prevail with the idea, although they plan to lobby Congress this year for the taxing legislation.

Feb 13, 2007, 04:11 PM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 74	California walks away from Internet tax effort Source: San Jose Business Journal ________ At a time when California is trying to find money to balance the budget, fund a statewide health-care plan and build roads and schools, lawmakers have backed away from one potential source of money: the Internet. Eliminating that possibility was, in the words of Board of Equalization member Bill Leonard, "a non-decision" that occurred last year when the Legislature declined to fund California's involvement with other states in an effort to synchronize state sales taxes. Simplifying the taxes charged by the nation's 7,500 tax jurisdictions is the first step before asking Congress for the right to require sellers on the Internet to collect sales tax for local jurisdictions. Organizers of the tax effort say California's absence doesn't doom the effort, but without the nation's most populous state as well as the absence of New York, Texas and Florida, it appears unlikely that the 15 smaller states can prevail with the idea, although they plan to lobby Congress this year for the taxing legislation.